Transcript BMSB Effects on the Shipping Industry

Wallenius Wilhelmsen Logistics
Capt. Phil Hansen
Head of Cargo Quality Americas
2015-06-09
BMSB Effects on Shipping
Industry
Agenda
01. Wallenius Wilhelmsen Logistics
02. Past season and actions taken
03. Next season
04. Future
Wallenius
Wilhelmsen
Logistics
3
This is Wallenius Wilhelmsen Logistics
Wallenius Wilhelmsen Logistics
Global deep sea ocean network serving 12
different trade routes on a fixed schedule
Specialists in ocean transportation of cars,
rolling equipment and break bulk cargo
Operating a modern fleet of approximately 60
PCTC and RoRo vessels, with some of the
lowest emission levels in the industry
13 terminals located at strategic ports in UK,
Finland, Belgium, China, South Korea and on
the US East coast and West coast
This is Wallenius Wilhelmsen Logistics
This is Wallenius Wilhelmsen Logistics
Americas to Oceania
This is Wallenius Wilhelmsen Logistics
We focus on high impact changes
Our environmental work is focused
on the areas where it will make the
biggest contribution to reducing
our impact on the environment
Past season and
actions taken
Past season and actions taken
How it all started
Dec 2014 – Jan 2015
– NZ - Isolated bugs have been found on various pathways for many years with increasing numbers recently
– NZ-Nov - dead bug found on imported new vehicle by mechanic
– NZ-Dec - 1st aggregated population; multiple active bugs found by stevedore inside new vehicle,
consignment heat treated
– NZ-Dec - 2nd aggregated population found only after heat applied; BMSB scattered across variety of cargo.
– AUS-Dec - 21 Trucks were quarantined in Brisbane.
– NZ-Dec - 10 units were not discharged in Auckland.
– NZ-Dec - All Auckland cargo ex-Savannah was refused in port of discharge.
– AUS-Jan - Savannah cargo for Port Kembla refused for discharge.
– AUS-Jan – Trucks ex-Savannah refused in Brisbane
– AUS-Jan - Savannah H&H and B/B refused in Port Kembla
Past season and actions taken
Pre-treatment requirements in Oceania
New Zealand
– 23rd December
– All cargo from USA requires treatment
– Currently pre-treatment required year around
Australia
– 23rd February East Coast
– 9th March all of US
– 30th April pre-treatment requirements ended
• Arrival of vessel to an AUS port
• Pre-treatment in the US until end of March
– 1st Sep Approximate date for start
DOA and MPI visit to US East Coast end January
Past season and actions taken
Consequences
General
– Vessel scheduling
• Uncertainty leading to increased speed and higher fuel
consumption – environmental impact
– Utilization of vessel space
• Initially light vessels - later capacity problems
– Documentation challenges
• Treatment certificates – AUS / NZ unclear requirements
– Cross-contamination
• Treated cargo placed next to untreated cargo (season)
• Transshipment cargo not affected by requirements
• Cargo to Asia
US
– Customer pre-treatment preferences
– Logistics and terminal problems.
• Cargo piling up in ports
• Challenges with treatment scheduling / time windows
• AUS 96h / NZ 72h
Oceania
– Vessel delays about 2 days per vessel
• Sometimes 16h/port (AUD 8000/port)
– Logistics and terminal problems
• Cargo piling up
• Scheduling of dock worker shifts
– Vessel rest hour
Past season and actions taken
Actions taken by WWL
Pre-treatment in US ports
– Setting up temporary pre-treatment solutions
Methyl Bromide / Heat / Sulfuryl Fluoride
(ProFume)
• Baltimore and Savannah (main volumes)
• Galveston, Long Beach, Tacoma
– Managing port/terminal space shortage
• Used existing warehouse space and leased new
when needed
• Planning for additional warehouse space in
Baltimore
– Year around treatment of used mobile homes
• WWL imposed
Past season and actions taken
Baltimore Volumes 2014
High and Heavy cargo (ZEE)
Next season
Next season
Next season
Governmental and international alignment needed
– A common pre-treatment for AUS and NZ (Bug season)
– Time windows (AUS-96 / NZ-72)
– Treatment options (Same bug – same treatment should be possible)
– Cross contamination in terminals and during transit (transshipment cargo)
– Forwarding of costs towards cargo owner
AUS-DOA and NZ-MPI alignment meeting in Canberra 13th May
Future
Future
Research and initiatives needed
Treatment methods (Capacity increase)
Characteristics of the BMSB
– Heat
– Lifecycle
• Reduction in treatment temperature and time?
• WWL Hotbox in Savannah used for tests by Virginia Tech
(50/day)
• MPI not satisfied
– Sulfuryl Fluoride (ProFume) Other gas?
• Reduction in treatment temperature, time and
concentration
• USDA performing tests at the University of California
• Adult / youth bugs surviving the winter?
• Eggs – on cargo or only leafs?
– Hibernation
• Daylight + Temperature
• Cargo hold
• Wake up time
• In cargo hold during transit?
• Environmental and safety concerns
Indicators of bug presence
– Inspection methods (Thermal fogging)
– Traps (Indicators)
• Design of traps
• Vessels/terminals
Questions?
– Future of ProFume
– Other treatment options
Future
Future
Government support
Global biosecurity concerns
– Shipping region
– What is next?
• Pre-treatment Infrastructure with environmental
focus
• BMSBs in other areas/regions
• Segregation and bio security areas in terminals
– How can the industry prepare?
• Alignment of requirements and knowledge sharing
• Increased knowledge and understanding of
industrial impact (logistics industry)
– Receiving region
• Capabilities to house and treat cargo if needed
• Alignment of requirements and knowledge sharing
• Increased knowledge and understanding of
industrial impact (logistics industry)
• Other type of bugs/pests
This is Wallenius Wilhelmsen Logistics
WWL Vessels
This is Wallenius Wilhelmsen Logistics
WWL Vessels
This is Wallenius Wilhelmsen Logistics
Finally some risks
USA
Oceania
– Increased environmental impact
– Frequency of vessel calls
• Fumigants
– Manufacturing jobs
• Trade barriers